Equitable Life: New compensation plan announced

The savers lost money after the pension company's near-collapse in 2000.

The coalition agreement says they will be compensated for their "relative loss", as recommended by the Parliamentary Ombudsman.

This goes much further than the limited scheme being devised at the request of the former Labour government.

After the Equitable closed to new business in 2000 more than a million policyholders suffered large cuts to the value of either their prospective or current pensions as the society struggled to stay solvent.

Paul Weir, spokesman for the Equitable Members Action Group, welcomed the new government's commitment.

"After 10 years of denial and obstruction by the previous administration it's been a long time coming," he said.

"Sadly many thousands of Equitable pensioners have died without justice, sacrificed on the altar of Gordon Brown's defence of 'lite touch' regulation." Read more....